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April,
2004 Electronic Update on IMSA Issues
Dear IMSA Friends:
"April is
the cruelest month" according to T.S. Eliot, and he didn't even have to deal
with the IRS! April 2004 is now  history,
and I trust you satisfied Uncle Sam and met your other goals and duties as well. April
was a great month for us. We completed the independent assessments for five more
companies and have now completed the necessary reporting for 13 companies in 2004.
Our efforts have been successful largely because we are now fielding 7 Qualified
Independent Assessors and 1 Associate Assessors. All these individuals are mature
life insurance professionals who have been in our business for many years. Their
expertise has enabled us to put together IMSA Assessment Teams that can directly
engage the key issues for companies using various distribution systems to market
a wide variety of IMSA-covered products. The
work has been especially challenging this year because we are often working with
a larger Assessment Team (we used 6 Qualified Independent Assessors on one assessment),
reviewing the maximum number of files under IMSA sampling standards, and creating
detail Supplemental Reports and Responsibility Matrices that we believe will be
very helpful to regulators conducting market conduct exams (see the article on
the California Request below). Because
of this, we now have "deliverables" that are significant and meaningful.
Company executives familiar with the IMSA process have been visibly impressed
with the package we deliver for them to share with market conduct examiners, if
they so choose. Now regulators can see just what testing was done during the assessment
process note what specific files were reviewed for new business, replacements,
licensing, advertising and complaint resolution and what those findings were.
They can also see what documents were reviewed, what field offices or regional
offices were visited and who was interviewed about what. Our belief is that they
will not want to reinvent the wheel and will use some of the IMSA material to
streamline their own market conduct examinations, saving both themselves and IMSA
companies valuable time and resources. Of course, a great deal depends on the
quality of the material they review. That is a part of the reason that we are
doing our best to assure the highest possible quality of the documentation and
other deliverables we provide.
IMSA on California's
Radar Screen  We
have been informed that the state of California is asking for IMSA information
during its market conduct exams. Among the questions asked and the information
sought are: - Is
your company a member of the Insurance Marketplace Standards Association (IMSA)?
- If so, provide documentation
indicating your compliance with the IMSA codes and principals. This include that
the affirmative responses to the Assessment.
- Questionnaire
relating to the Principles of Ethical Market Conduct and the Code of Ethical Market
Conduct and accompanying Comments for covered products.
- Provide
us with a copy of the most recent response to the IMSA Assessment Questionnaire.
- Provide us with a copy
of the most recent Independent Assessor Report.
-
Provide us with a copy the Membership Application and Self-Assessment Report.
It's great to see this
kind of visibility for the IMSA assessment process coming after the sustained
and focused efforts on IMSA's part at getting buy-in from the regulators to the
great potential impact the IMSA assessments can have on streamlining state market
conduct exams. IMSA
Renewals for 2004 On
January 5, 2004, IMSA announced that renewal membership was achieved by:
- West Coast Life Insurance
Company of Omaha, Nebraska
On
February 27, IMSA announced that the following companies had renewed their IMSA
membership: - MTL
Life Insurance Company, Oak Brook, Illinois
-
Pacific Life Insurance Company, Newport Beach, California
-
Pacific Life & Annuity Company, Newport Beach, California (subsidiary of Pacific
Life)
- Primerica
Life Insurance Company, Duluth, Georgia
-
Principal Life Insurance Company, Des Moines, Iowa
- Thrivent
Financial for Lutherans of Appleton, Wisconsin
- Thrivent
Life Insurance Company, Appleton, Wisconsin (subsidiary of Thrivent)
On
March 24, 2004: -
Baltimore Life Insurance Company, Owings Mills, MD
-
Liberty Life Assurance Company of Boston, Boston, MA
- National
Benefit Life Insurance Company, New York, NY
- Massachusetts
Mutual Life Insurance Company, Springfield, MA(including its affiliates C.M. Life
Insurance Company, Hartford, CT, and MML Bay State Life Insurance Company, Hartford,
CT).
Atchinson
congratulated the firms "for renewing their commitment to meet the high ethical
standards required of IMSA members, for ensuring quality business practices that
safeguard the consumer, and for continuing to treat customers fairly and honestly."
We expect an announcement
shortly that the following companies will also be added to the list:
- Jefferson Pilot Financial,
Greensboro, NC (including Jefferson Pilot Financial Insurance Company, Concord,
NH, Jefferson-Pilot Life Insurance Company, Greensboro, NC, and Jefferson Pilot
LifeAmerica Insurance Company, Florham Park, NJ)
- Kanawha
Insurance Company, Lancaster, SC
- Mutual
of Omaha (including its affiliates Companion Life Insurance Company, Rye, NY;
United of Omaha Life Insurance Company, Omaha, NE; and United World Life Insurance
Company, Omaha, NE)
- National
Farm Life Insurance Company, Fort Worth, TX
- Sun
Life Assurance Company of Canada, Toronto, Ontario
- Sun
Life Assurance Company of Canada (U.S.), Wellesley Hills, MA
- Sun
Life Assurance and Annuity Corporation of New York, New York, NY
NEEDS-BASED
SELLING IS AT THE HEART OF MULTICULTURAL MARKETING, INSURANCE ETHICS LEADER ADVISES New
York, NY -"Ethical marketing in the multicultural market is needs-based selling
at the most fundamental level," Brian Atchinson, executive director of the
Insurance Marketplace Standards Association (IMSA), the ethics standards setting
organization for the life insurance, long-term care insurance and annuities industry
said today. Speaking
here at a workshop on complying with ethical, legal and regulatory obligations
in the multicultural marketplace, Atchinson advised the audience that, while,
insurance and financial service professionals should treat all customers ethically
regardless of age, gender or ethnic background, "it's equally important to
recognize the subtle differences in each ethnic groups that can create both opportunity
and challenge,"Atchinson said. Atchinson
recommended the following approaches to multicultural markets: - Clear
and appropriate communication with policyholders, recognizing special considerations
based on age, needs and ethnic background.
- Transparency in materials, including
accurate translations and helpful, clear information to help consumers making
complex financial decisions.
Atchinson
also stressed the importance of a corporate culture of ethics and compliance within
companies seeking to market and sell to culturally diverse markets. "Companies
must create an environment that fosters clear, open communication from the CEO
throughout the company," he said. "Management has to set the example
in word and deed of appropriate conduct in the life insurance marketplace." Atchinson
addressed the workshop produced by Center for Business Intelligence. See
the full story on IMSA's website at www.imsaethics.org. INSURANCE
ETHICS ORGANIZATION PRAISES NCOIL APPROVAL OF MUCH-NEED MARKET CONDUCT REFORM
MODEL LAW WASHINGTON,
DC -The Insurance Marketplace Standards Association (IMSA), a national, non-profit
organization that sets ethics standards for companies selling life insurance,
long-term care insurance, and annuity products, today praised the National Conference
of Insurance Legislators (NCOIL) for adopting its Model Law on Market Conduct
Surveillance. (March 2, 20003)  "We
applaud NCOIL for recognizing the value of self-assessment, self-reporting, and
remediation activities in the provisions of the model law. This is an important
step in protecting consumers and bringing about much-needed marketplace reform,"
said IMSA Deputy Director and General Counsel Donald Walters. Walters testified
on various aspects of the Model Law during the drafting stage and suggested appropriate
language. "NCOIL's Model Law will encourage state regulators to recognize
the importance of insurer self-evaluation programs and also to use documentation
from best practices organizations such as IMSA in their exams to mitigate potential
fines and penalties," said IMSA Executive Director Brian Atchison.
Walters
and Atchinson said they were pleased that NCOIL identified IMSA specifically as
an example of a best practices organization in the life insurance industry. The
NCOIL approved the Market Conduct Surveillance Model Law at its spring meeting
in San Antonio on February 27. State legislatures now may adopt the Model Law. See
the full story on IMSA's website at www.imsaethics.org. Hope
to See You In May You
are invited to breakfast at the Chicago Westin on Thursday, May 13. Please be
sure to come. The Kenneth J. Kalis Company is sponsoring the breakfast, and IMSA
has put together a deep and thoughtful program. Among the Best Practice Workshop
offerings from March 14-15 are: Risk
Management Best Practices in Life Insurance Ted
D. Lewis
Senior Vice President, General
Counsel & Corporate Secretary
Beneficial Life Insurance Company John
Vaccaro
Corporate Vice President
New York Life Insurance Company Producer
Panel - Understanding and Applying Compliance Rules in the Field Suitability for
Seniors Compliance Kevin
B. Frawley
Vice President, Compliance
Prudential Insurance Co of America
Timothy M. Fitzgerald
Market Conduct
Farm Bureau Life Insurance Co. Sarbanes
Oxley - Section 404 Compliance Donald
J. Walters
Deputy Director, Chief Counsel & Secretary,
IMSA Sharon
Busch
Assistant VP, Operations Administrator
Bakers Fidelity Life Insurance
Company SEC
Issues of Concern & Enforcement Actions John
Walsh
Chief Counsel, OCIE
U.S. Securities & Exchange Commission CEO/Regulator
Panel Discussion of IMSA Recognition & NAIC Initiatives Lou
Lower, CEO
Horace Mann CEO
Speaker TBA Therese
M. Vaughan
Commissioner
Iowa Insurance Division Julie
Bowler
Commissioner
Massachusetts Insurance Division NAIC
Market Analysis Initiative & How it Will Work Julie
Bowler
Commissioner
Massachusetts Insurance Division Tim
Mullen
Senior Regulatory Service Manager
NAIC Do
Not Call List James
J. Buddle
VP, Chief Compliance Officer
General Electric Capital Assurance
Company Lubna
Javaid
Primerica Life Insurance Company | |
